How do I Extrude Faces Along Normals, and also shrink in two other directions?
If you think about this one the other way round..

The I Inset operator has a 'Depth' setting, which you can adjust in its F9 panel.
If you need further adjustments, perpendicular to normals, for unconnected faces, you could set Pivot to 'Individual Origins', Transform Orientation to 'Normal', and scale in the per-face XY... SShiftZ.